PGT Innovations, Inc.

Good morning and welcome to the PGT Innovations First Quarter 2023 Earnings Conference Call. All participants are in this and only mode. I'd like to turn the conference over to PGT Innovations Senior Vice President of Corporate Development and Treasurer, Brad West. Please go ahead, sir.

Thank you. Good morning and welcome to the PGT Innovations First Quarter 2023 Investor Conference Call. With me on the call today are our President and CEO, Jeff Jackson, and our Interim Chief Financial Officer and Vice President of Corporate Finance, Craig Henderson. On the investor relations section of our company website, you will find the earnings press release issued earlier today, as well as the slide presentation we have posted to accompany today's discussion. This webcast is being recorded and will be available for replay on the company's website. Before we begin our prepared remarks, please direct your attention to the disclosure statement on slide two of the presentation as well as the disclaimers included in the earnings press release and our SEC filings that discuss forward-looking statements. Today's remarks contain forward-looking statements, including statements about our 2023 financial performance outlook. Those statements involve risks, uncertainties, and other factors that could cause actual results to differ materially. Additional information on factors that could cause actual results to differ from expected results is available in the company's most recent SEC filings. Additionally, on slide three, note that we report results using non-GAAP financial measures, which we believe provide additional information to help investors compare performance between reporting periods. A reconciliation to the most directly comparable GAAP measures is included in the tables in the earnings release and in the slide presentation appendix. At this time, I will now hand over the call to our company's CEO and President, Jeff Jackson.

Thank you, Brad, and good morning, everyone, and thanks for joining us for today's call. I'm very pleased with the start of our year and want to thank our team members and supplier partners for executing well in a challenging, dynamic environment. Following our strong finish to 2022, we delivered a record first quarter despite continued macroeconomic uncertainty, including higher interest rates and persistent inflation. Turning to slide four, Despite a slowing national economy, we were able to increase revenue to $377 million, grow adjusted EBITDA to $70 million, and expand adjusted EBITDA margins by 210 basis points compared to prior year. Our repair and remodeling channels proved strong in the first quarter, and we expect that trend to continue into the second quarter based on our current order backlog, and continued strong demand trends in the second quarter. The Repair and Remodeling Channel nationally is benefiting from record home equity and homeowners deciding to stay amidst high mortgage rates, and PGTI has benefited from increased hurricane awareness as a result of Hurricane Ian, which made landfall in Southwest Florida in late September of 2022. In both business segments, we increased our delivery performance, improved our quality, and reduced our lead times to dealers and delivered EBITDA margin growth versus the prior year through strong operational execution and cost containment measures. We continue to show strong execution regardless of the obstacle, whether it's a major hurricane, a ransomware incident, or continued macroeconomic headwinds as we drive to execute our strategic plan. Next on slide five. Let's take a closer look at the first quarter, our sales trends and key initiatives. In the first quarter, we generated total revenue of $377 million during the quarter. Sales in our southeast segment were $282 million, an increase of $10 million versus the first quarter of 2022. Sales grew 4% versus the prior year quarter and grew 16% sequentially from the fourth quarter. Our Southeast brands have always served both the R&R and new construction markets well, and our year-over-year growth was fueled by continued strength in the R&R markets. Orders in the Southeast grew 39 million, or 15%, from the prior year quarter, driving the increase in total company order backlog. We recently announced a new initiative rebranding our Hallmark PGT Custom Windows and Doors, As a leader in high-performance glass technology for windows and doors, we've expanded positioning to allow specialized products for energy efficiency, sound reduction, and security to be included and introduced into the future. Our new tagline, that's the freedom of PGT, captures the value and simplicity we bring to daily life. The rebranding is about giving consumers control and peace of mind over external forces like extreme weather, home security, and increasing noise pollution. Sales in our western segment were 95 million, an increase of 8 million versus prior year. Out west, we were impacted by multiple storms in California and Arizona, resulting in a reduction of construction activity early in the quarter. Our western segment is also more sensitive to movement in the new construction, the western markets leading the nation in declining new home construction activity western segment sales were up nine percent versus prior year first quarter on strong execution and low lead times organic orders in the western segment were 16 below prior year first quarter our martin acquisition, which closed in late 2022, continues to be integrated, and we are aggressively pursuing sales synergies we believe exist with the premium garage door and legacy business. We expanded our EBITDA margins by 210 basis points, driven by strong operational execution, pricing actions offsetting material and wage inflation, and cost containment measures amidst continued microeconomic uncertainty. While new construction starts and orders have declined versus prior year, both business segments benefited from strong brands such as PGT, Echo, and Anlin that all have seen and are continuing to see demand growth in repair and remodeling channels. Our focus on quality and delivery has also contributed to strong growth in our southeast region aluminum demand. our aluminum pipeline continuing to increase in the second quarter as we work to drive higher levels of throughput and recapture market share our commitment to innovation which drives us to deliver products with the features performance and value demanded by our builders and customers was highlighted by our corning partnership to evolve glass technology we previously announced our exclusive right to manufacture and sell new and innovative glass products, Thin Triple Insulated Glass, which we are branding Triple Diamond, and our branded Diamond Glass Impact Resistant Glass. As discussed on our last call, PGTI will be the first manufacturer in the U.S. window and door market to offer Thin Triple Insulated Glass and Diamond Glass Impact Resistant Glass units. We believe that even a basic window can and should work harder, and we are uniquely positioned to bring these new products to the US consumer. Benefits from our new glass technology include windows that are clearer, more energy efficient, easier to install, and impact resistant, helping make buildings more sustainable and comfortable. Our partnership with Corning Architectural Technical Glass to produce next-generation window applications leads to more sustainable, energy-efficient windows and doors. Progress is underway. We have placed orders for new equipment to produce diamond glass for select PGT Innovation brands later this year, and we'll be producing triple diamond glass for other window and door manufacturers in early 2024. Recently, we also announced our exclusive relationship with Truist Service Finance for consumer financing in our dealer channel. We are very excited about this new program, allowing us to offer new financing options for our dealers. We believe this partnership will make replacement windows and doors more attainable for consumers with financing options that fit their specific needs. Our order backlog was $236 million at the end of the quarter. but slightly from the fourth quarter. Order backlog is of similar size today as demand has remained roughly in line with our increased production capacities. As we have previously disclosed, our board unanimously approved the adoption of a rights plan in response to the accumulation of PGT Innovation shares by a strategic investor. We remain committed to engaging in constructive dialogue with all our investors and we welcome their perspectives. We also want to ensure all investors are able to realize the full long-term value of their investment and receive fair and equal treatment, which is what the ROCS plan is designed to do. We are not actively pursuing a strategic alternative at this time and are executing on our strategic plan to grow shareholder value over the long term, as evidenced by our record 2022 results and our strong first quarter. we are always open to explore opportunities to maximize shareholder value. We do not believe our current trading range reflects the long-term value of the company. To that end, we have executed on our $250 million share repurchase program. Now I'd like to turn the call over to Craig Henderson to review our first quarter results in greater detail. Craig?